In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates:
INTC, SUP, EXPD, TRP, CVLT, ADP, LINTA, PG, DD, BMY, and AVP
NEW BULLISH Plays
Abercrombie & Fitch - ANF - close: 51.61 change: +0.84
Stop Loss: 49.75
Current Gain/Loss: unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below
Why We Like It:
This is an aggressive trade. ANF has been lagging behind both the market and its peers in the retail sector. That also means that shares of this apparel store could try and play catch up with its sector. The stock has been churning sideways the last few months and appears to have built a bottom under the $50.00 level. Now ANF is starting to breakout.
The bottom of the November gap down is near $51.50. Thus readers may want to go ahead and launch bullish positions now. I want to see a little more confirmation so I am suggesting a trigger to open positions at $52.05. We want to keep our position size small to limit our risk. There is potential resistance at the top of the November gap near $55.00. Plus the exponential 200-dma (near $54.40) and the simple 150-dma (near 55.45) could both be technical resistance.
If ANF hits our bullish trigger at $52.05 we will use a stop loss at $49.75. Our exit target is $56.50.
FYI: The Point & Figure chart for ANF is bullish with a $69.00 target.
Trigger @ $52.05
Suggested Position: buy ANF stock @ (trigger)
- or -
buy the Apr $52.50 call (ANF1221D52.5) current ask $2.03
Entry on March xx at $ xx.xx
Earnings Date 05/16/12 (unconfirmed)
Average Daily Volume = 3.2 million
Listed on March 13, 2011